BlockBeats News, May 8th, American Bitcoin revealed that it has obtained a mining machine purchase agreement from Bitmain with an implicit discount of about 44% by using BTC as collateral. According to the latest quarterly filing, in February this year, American Bitcoin purchased 11,298 Bitmain S21 XP ASIC miners for approximately $49.4 million, with a total hash rate of about 3.05 EH/s. 80% of the payment was completed by pledging 314 BTC and setting up a two-year redemption arrangement. According to the agreement, the pledged BTC is valued at about $125,900 per coin, while the market price of BTC at that time was less than $70,000.

The agreement stipulates that during the approximately 24-month redemption period, Bitmain is not allowed to sell the related BTC collateral unless American Bitcoin ultimately gives up the redemption. If the price of BTC is higher than the agreed valuation at that time, the company can redeem the BTC with cash and retain the appreciation; if the price of BTC is lower than the agreed valuation, the company can choose to forgo the redemption and let Bitmain hold the devalued BTC.

As of March 31st, the company has pledged a total of 3,090 BTC to Bitmain, with a fair value of about $211 million, corresponding to a mining machine purchase liability of about $364 million.